Star made the aggressive move to divest of its Brisbane operations in March by selling its 50% stake in the multibillion-dollar Queen’s Wharf development back to partners Chow Tai Fook and Far East Consortium. By doing so, Star helped ease its financial hardships by relinquishing substantial commitments related to the project. The company also consolidated full ownership of Star Gold Coast, viewing that as a better long-term investment. Rising regulatory expenses and a consumer downturn mean Star is now operating at a financial loss. According to Higgins, there were enough red flags at board level to indicate that directors needed to investigate further. This included requests to approve an increase in cheque cashing facilities for blackcoin.co a junket operator from $50 million to $80 million with no supporting information, and at short notice. The corporate watchdog has accused 10 former Star Entertainment board members and executives of being blind to the red flags that pointed to money laundering and illicit activities at its casino.
Both Star and Australia’s other major casino operator, Crown, have emerged from a range of high-profile scandals in recent years. Whatever happens to it and its casino assets, there are bigger questions about whether the age of unfettered gambling revenue for casinos may have already ended. Those inquiries found that The Star failed to protect its casinos from being used by criminal syndicates to launder money. The Star’s casinos, which along with Brisbane include The Star Gold Coast and The Star Sydney in New South Wales, were also accused of welcoming and encouraging gamblers banned in other states to gamble. Chow Tai Fook is largely the reason for The Star’s troubles in the first place, as the Hong Kong firm’s ties to Triad groups are what prompted Star suitability concerns across the country. The buyers of The Star Brisbane, Hong Kong-based firms Chow Tai Fook and Far East Consortium, will additionally assume A$430 million in debt owed to lenders that helped finance the resort located on the banks of the Brisbane River. Located on Level 1 in the casino, Rick Lily is the ultimate live music venue that boasts a to-the-ceiling stock of the world's most sought-after tequilas.